Real estate appraisal
By Ido Shani –International Relations Representative – Keren Gad Group
Real estate appraisal, property valuation or land valuation is the practice of developing an opinion of the value of real property, usually its Market Value. The need for appraisals arises from the heterogenous nature of property as an investment class: no two properties are identical, and all properties differ from each other in their location – which is one of the most important determinants of their value. So there cannot exist a centralised Walrasian auction setting for the trading of property assets, as there exists for trade in corporate stock. The absence of a market-based pricing mechanism determines the need for an expert appraisal/valuation of real estate/property.
In Israel, the real estate appraisal profession is regulated by the Council of Land Valuers, an organ of the Ministry of Justice; the largest professional organisation, encompassing the majority of appraisers/land valuers is the Association of Land Valuers. Valuers must be registered with the Council, which is a statutory body set up by law, and which oversees the training and administers the national professional exams that are a prerequisite for attaining registration. In 2005 the Council set up a Valuation Standards Committee with the purpose of developing and promulgating Standards that would reflect best practice; these have tended to follow a rules-based approach.
Historically, most valuations in Israel were statutory valuations (such as valuations performed for purposes of Betterment Tax – a tax administered on any gains accruing to the property by way of changes to the local planning) as well as valuations performed for purposes of bank lending. This is now changing: since the adoption in Israel of International Financial Reporting Standards (IFRS) (were adopted in 2006; will fully come into effect in 2008), the profession has been additionally engaged in performing valuations for purposes of financial reporting.
At Keren Gad a network of senior, qualified valuers will ensure that you receive an accurate, well researched, professional valuation report, wherever you or your property may be located and our valuations are regularly accepted by Israel’s top financial institutions. Our ongoing research, sales analysis and interaction with the main players in the markets throughout Israel ensures we remain in touch with current market trends.
Whether you are buying, selling, leasing, dissolving a partnership, involved in a family, de-facto or marriage settlement, executor of a deceased estate, having land resumed or acquired, undertaking a subdivision, appealing against a statutory assessment, undergoing a rent review, building units or a commercial or industrial complex or seeking finance for any reason, you need to know the true value of your property. Keren Gad Valuers will provide you with an accurate, independent market value, supported by well researched sales and/or rental evidence.
For our standard, short-form valuation report on a residential property, a small investment is nominal compared with the thousands of dollars you will spend in taxes and charges alone. The peace of mind that comes from knowing you have not paid too much or that you have not undersold your property, is priceless. Please contact us for a fixed price quote before you proceed with what may be your largest investment.
Our extensive network of valuers means that no matter how remote or urgent your valuation request is, we can usually complete your residential valuation within 3 – 5 working days and your commercial/industrial valuation within 7– 14 working days. When accepting your valuation instructions National Property Valuers will provide an estimated turn around time, so you will know when to expect your report.
Purposes of Valuation:
First mortgage finance security
Pre-sale or pre-purchase assessment
Set reserve price at auction
Site identification and negotiation for purchaser acquisition
Replacement value for insurance purposes
Rental assessments, reviews and determinations for all commercial/industrial property types
Advice on lease terms and conditions
Family law, matrimonial settlement and litigation matters
Meeting Taxation Department requirements ie. capital gains tax, margin scheme, stamp duty and replacement cost valuations for accounting depreciation purposes.
Accounting/balance sheet requirements
Objection to rating and taxation valuation
Assessment of compensation for compulsory acquisition
Development feasibility analysis